CHICAGO — Chicago Mayor Richard Daley renewed his pledge Wednesday not to raise property taxes, but warned that the city may be forced to cut some services as it grapples with a record $654.7 million of red ink in the next budget.

Daley said in his annual state of the city address that he would work to improve government management and consolidate departments to save money. But he said he couldn’t “rule out that to balance next year’s budget we’ll be forced to put many things on hold or reduce or cut some services, permanently or for a year or two. But I can assure our taxpayers that should it come to this, it will be as a last resort.”

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